EQUITIES
The domestic stock market opened the week on a positive note, driven by bargain hunting in banking names, including GTCO (+6.5%), ZENITHBANK (+5.0%), and UBA (+2.7%). As a result, the All-Share Index advanced by 0.6% to 105,551.39 points, with the Month-to-Date and Year-to-Date returns settling at -2.1% and +2.6%, respectively.
The total volume of trade increased by 16.5% to 440.52 million units, valued at NGN10.47 billion, exchanged in 13,314 deals. ZENITHBANK was the most traded stock by volume and value, at 55.06 million units and NGN2.61 billion, respectively.
Sectoral performance was mixed as the Banking (+3.8%), Oil & Gas (+0.4%), and Consumer Goods (+0.1%) indices advanced, while the Insurance (-1.5%) index closed lower. The Industrial Goods index remained unchanged.
As measured by market breadth, market sentiment was positive (1.2x), as 25 tickers gained relative to 21 losers. ROYALEX (+10.0%) and LIVESTOCK (+9.9%) led the gainers, while NEM (-9.6%) and UCAP (-9.3%) posted the most significant losses of the day.
CURRENCY
The official FX rate appreciated by 0.9% to NGN1,532.50/USD.
MONEY MARKET & FIXED INCOME
The overnight lending rate declined by 7bps to 32.8% following inflows from FGN bond coupon (NGN600.19 billion).
Activities in the Treasury bills secondary market were bullish, as the average yield contracted by 3bps to 19.3%. Across the curve, the average yield contracted at the short (-3bps), mid (-3bps), and long (-3bps) segments, driven by the demand for the 45DTM (-3bps), 171DTM (-3bps), and 332DTM (-4bps) bills, respectively. Similarly, the average yield contracted by 4bps to 22.5% in the OMO segment.
In contrast, the FGN bond secondary market traded on a bearish note, as the average yield pared by 1bp to 18.4%. Across the benchmark curve, the average yield expanded at the mid (+5bps) segment due to the selloff of the APR-2032 (+15bps) bond but closed flat at the short and long ends.
